ExtraHop Networks didn’t have to raise cash. But the fast-growing company has reeled in $14 million in a hot, oversubscribed venture capital round led by Meritech Capital Partners. “There was a lot of interest,” CEO Jesse Rothstein tells GeekWire. Part of the reason is that the company has been adding customers at a rapid clip for its networking appliance and software system that’s designed to make sure IT managers avoid costly outages and problems.
There have been some high-profile technical failures in recent weeks, including a massive outage at Amazon Web Services. Extrahop sells primarily to Fortune 1000 companies. But those high-profile failures are simply driving more attention to the issue highlighted by ExtraHop.
For years, Rothstein said that companies have been “over promising and under delivering” when it comes to monitoring and maintaining the health of applications. Because of that, the former F5 executive said that there’s now a tremendous opportunity to fill a void in the market with a product that just works.
The company continues to add to its team, with three new hires slated to start this week. It now employs about 50 people, and the new cash will be used to add even more people to the team.
The company also bolstered its executive ranks last month when it added Palvi Mehta as chief financial officer.
In addition to Meritech, existing investor Madrona Venture Group also participated. Andreessen Horowitz, a small angel investor in the early stages in the company, did not come back into the round.
“We are seeing tremendous traction in the market, and we plan to apply the new capital to take advantage of the opportunity ahead of us,” Rothstein said. Total funding in the company now stands at just over $20 million.
As a result of the financing, George Bischof of Meritech Capital has joined the company’s board.